Table of contents:
- 1 Litecoin investment made easy: How Top Traders act
- 1.1 Investing in Litecoin: sensible or not?
- 1.2 INVEST IN LITECOIN: THAT IS WHAT TRADERS NEED
- 1.3 REGISTRATION WITH CRYPTO BÖRSE: PERSONAL DATA IS REQUIRED
- 1.4 VERIFICATION OF THE DATA
- 1.5 INVESTING IN LITECOIN WITH PREVIOUS ACCOUNT CAPITALIZATION
- 1.6 DEPOSIT OF CRYPTO CURRENCIES
- 1.7 USE CRYPTO WALLET FOR SECURE MANAGEMENT AFTER LITECOIN-INVESTMENT
- 1.8 DIFFERENCES BETWEEN ONLINE AND OFFLINE WALLETS
- 1.9 OFFLINE WALLETS FOR LONG-TERM TRADERS
- 1.10 INVESTING IN LITECOIN: CHOOSING THE RIGHT TIME ON THE MARKET
- 1.11 TAKE ADVANTAGE OF DOWNWARD TRENDS TO BUY THE COINS
- 1.12 Alternatives to the direct purchase of Litecoin
- 1.13 Investing in Litecoin Mining: good idea or not?
- 1.14 LTC MINING NOT ALWAYS PROFITABLE
- 1.15 Conclusion: trading success
Litecoin investment made easy: How Top Traders act
Anyone who wants to invest in Litecoin can register directly with an exchange online. The trading account is free of charge, as is often the case with the wallet. All that the traders need is equity capital. This can be deposited either with Fiat money comfortably with different service providers or the traders can also use Coins for it. The clou: The traders can even earn coins themselves and later invest them again in Litecoin. This is made possible by crypto faucets or Litecoin Mining, among others. We show the profitable possibilities for Litecoin Investment.
- LTC Investment possible at numerous crypto exchanges
- Traders need a wallet for direct handling of the coins
- Secure LTC with Mining or Faucets (free of charge)
- Use downward trend for buying Litecoin at stock exchanges in a targeted manner
Investing in Litecoin: sensible or not?
Litecoin is behind Bitcoin or Ripple one of the longest existing crypto currencies on the market and ranks among the Top 10 on the crypto list. For those who want to focus their investment and investment opportunities on an Internet currency that has a high market capitalization and is among the top ten, Litecoin can be an interesting alternative to Bitcoin. The crypto currency is clearly more favorable, offers however due to its numerous features also much Potenzial.
INVEST IN LITECOIN: THAT IS WHAT TRADERS NEED
If you want to invest in Litecoin, you need the following
- Crypto Stock Exchange
In our first example we assume that the dealers want to buy Litecoin with their own capital. However, there are other ways in which users can get hold of the coins without having to buy them with Fiat money or other crypto coins. Let’s take a look at how exactly this works in a moment. First we will concentrate on the trading activities at a crypto exchange. The trading platforms are commonly known as Exchanges. The traders do not only find one Litecoin exchange, but several, which are not only represented in Germany, but worldwide. By registering online, it is also very easy for German investors to start trading, because the registration does not have to be done at a branch office (most exchanges do not have branches with contactable employees anyway).
REGISTRATION WITH CRYPTO BÖRSE: PERSONAL DATA IS REQUIRED
If the traders have decided to use a crypto exchange, they first have to register with some personal information to be able to invest in Litecoin. Among the requested data are
- Date of birth
- e-mail address
When logging in, traders often have to assign a password or set a user name. It often cannot be changed later, so traders should pay attention to choosing a specific username when registering. The assignment of a password also determines how secure the access to the trading account will be later. Many crypto exchanges help the users in this respect and recommend, for example, a certain character length or the use of numbers, letters and special characters. As experience shows, some crypto exchanges also offer the possibility of displaying the security level of the password entered. Often a green note appears if the password is particularly secure or a red note if the password could be cracked too easily by hackers.
VERIFICATION OF THE DATA
As soon as the users have registered, it can almost start. But first the verification of the entered data has to be done. To do this, users need an identification document (identity card or passport) and proof of address. The latter can be provided with a current telephone or electricity bill, for example. Verification is ensured, for example, by uploading the documents and the resulting verification by the support team, or is often offered by video call with a support employee.
INVESTING IN LITECOIN WITH PREVIOUS ACCOUNT CAPITALIZATION
With the successful registration and verification of the information, an essential step towards trading activities is done. However, before the traders can invest in Litecoin, they first need equity. This can be provided either with Fiat money or with crypto currencies. Many exchanges allow investors to choose which payment method they wish to use. Among other things, there is a choice:
- Credit cards (primarily Visa and MasterCard)
- Electronic purses (especially Skrill and Neteller)
- Bank transfer
- Instant bank transfer
Traders can use the above-mentioned service providers for account capitalization with Fiat money, although the conditions and especially the processing times differ significantly. Experience shows that account capitalization is quicker with credit cards or electronic purses. Also the immediate transfer is usually carried out within a few hours. However, it takes considerably longer with the classic bank transfer, because depending on the participating credit institutions, the transaction time can be up to five working days. In addition, there are possible costs due to currency conversions, which are not charged by the crypto exchange itself, but by the participating credit institutions.
DEPOSIT OF CRYPTO CURRENCIES
Who already possesses Bitcoin or other Coins in its Wallet, can pay with it at many stock exchanges also with it and exchange the Coins for example against Litecoin or sell it and invest with it the proceeds in Litecoin. Necessary for this is however the linkage with the Krypto Wallet, which happens by the public address. Wallet owners keep the private wallet address for themselves, as it serves as access and is the PIN for the wallet.
USE CRYPTO WALLET FOR SECURE MANAGEMENT AFTER LITECOIN-INVESTMENT
The Krypto Wallet plays an essential role in successful trading activities (not only in the investment in Litecoin). Digital wallet not only ensures that the coins are transferred to a specific address, but also that they can be managed there, protected against hacking attacks for a longer period of time. This is why the selection of a suitable wallet is so important for traders. Many exchanges provide an online wallet free of charge with registration on the platform, which is advantageous for direct trading entry. However, if the traders would like to invest in Litecoin in the long term and manage the coins securely, we recommend transferring the coins to an offline wallet.
DIFFERENCES BETWEEN ONLINE AND OFFLINE WALLETS
Why is it better to use an offline wallet than long-term oriented traders? To answer this question, we will take a closer look at the security features of the individual wallets. Although the online wallets offer flexible access through the Internet connection and are offered free of charge, the Internet connection is also exposed to minor hacking attacks without protection. The principle is comparable with the conventional W-LAN connection at home, because it is also secured with various protection mechanisms, so that, for example, the neighbor cannot hack into the Internet connection for free. Access to the online wallet works on a similar principle. If, for example, it is not optimally secured (among other things by a second security level with 2-factor authentication), hackers can manipulate the wallet without hindrance and, in the worst case, steal the coins. More secure are the offline wallets.
OFFLINE WALLETS FOR LONG-TERM TRADERS
The offline wallets are available, for example, as paper or hardware wallet; they are only available free of charge to a limited extent. While traders can generate and print the Paper Wallet free of charge, they have to expect a one-time investment of up to 100 Euro and more (depending on the provider) for the Hardware Wallet. In return, the offline wallets offer maximum security, which also means less flexible access to the coins. An Internet connection is completely missing. On the one hand, this is positive, because hackers cannot gain access without the private wallet address, but on the other hand, it is also disadvantageous, because the offline connection does not provide fast access to the coins as with online wallets. However, since security is often the top priority for long-term traders, we recommend using the hardware or paper wallet for long-term storage and the online wallets for short-term storage.
Tip: Coins can be kept in the wallet for a flexible period of time. However, if you want to secure a tax advantage, leave the coins in the wallet for at least twelve months and only then sell them. The advantage: If the coins are only sold after a holding period of at least twelve months, traders do not have to pay tax on their profits. Especially with larger Coins quantities or an enormously profitable sale this becomes naturally clearly noticeable, so that the Trader does not have to deliver anything of its actual profit.
INVESTING IN LITECOIN: CHOOSING THE RIGHT TIME ON THE MARKET
Successful traders know exactly when they invest in Litecoin and when they can sell the coins at a profit. Often a look at the market and the analysis of the price is enough for them to take advantage of their experience and seize an optimal opportunity. Can less experienced traders also follow this principle or do they need more support? In principle, any trader who is willing to learn and enthusiastic can benefit from the crypto-market and the development of the Litecoin course. Important is the price analysis, because the Litecoin course never just runs in one line, but often shows a volatility. Falling and rising prices alternate as well as sideways trends and every situation has its advantages and disadvantages in the market. In the current sideways trend of the Litecoin Cash, for example, CFDs allow traders to take advantage of the pronounced sideways trend, because profits can be made by trading even the smallest price movements.
TAKE ADVANTAGE OF DOWNWARD TRENDS TO BUY THE COINS
Traders can, for example, take advantage of downward trends if they want to invest in Litecoin. Such trend situations always mean that traders currently have little interest in buying the crypto currency. In order to be attractive for the market nevertheless, the prices of the Coins sink frequently, which becomes apparent by the downward trend in the chart. For the sales naturally not optimally, for the purchase of the Coins however already. If you want to invest in Litecoin, you should specifically look for downward trends and wait until the trend reversal is imminent. The advantage: Traders get the best price for the market situation and can use their equity to buy more coins.
Alternatives to the direct purchase of Litecoin
Not every trader has a lot of equity capital to actually be able to acquire Litecoin or another crypto currency. Can these investors nevertheless profit from the development on the crypto-market or are they denied this chance? Buying with equity capital at Crypto Exchange is of course the first way to invest in Litecoin. However, if you are looking for alternatives, you can look for example at the so-called Litecoin Faucets, which are also available for other crypto currencies. The advantage: The traders register free of charge with their public wallet address and do not need any equity capital. Instead they get the provided time Coins free of charge. Sounds too good to be true? In practice, however, it turns out that this principle actually works for many websites and mobile applications. Users register with their wallet address and receive micro-coins for their activities. This is one of the tasks:
- answering test questions
- Participate in surveys
- evaluate applications
The challenges for the free coins are extremely low, so that really everyone with a little patience and time investment can get Litecoin and other crypto coins in his wallet this way. The quantities are only small, but here perseverance makes the success. If you specifically secure the free coins in your wallet for several months, you will be able to sell them profitably at an exchange one day.
Investing in Litecoin Mining: good idea or not?
Many users see another possibility to use Litecoin for themselves in mining. For example, they provide computing power and participate in transaction processing. As a reward, they receive Coins. Litecoin now offers a reward of 12.5 Litecoin for a generated block. Due to the halving in August 2019 the reward has been reduced, because before there was the double amount. However, the effort for transaction processing is much lower than for example with Bitcoin. This makes it easier for users to act successfully as miners. Nevertheless, it is an advantage if the Miners provide a certain amount of computing power, which often cannot be guaranteed with the conventional hardware components of a PC. For this reason, many miners invest in the purchase of expensive hardware. Prices can vary considerably, ranging from USD 100 to USD 3,000 or more.
LTC MINING NOT ALWAYS PROFITABLE
Of course, Litecoin Mining can be profitable with the appropriate framework conditions. It is important that the users compare the potential reward and the current price of the crypto currency and also consider the cost expenditures. Not to forget, for example, the cost of electricity or the fees for the mining pool, if the miners join forces with other users, for example, to bundle their computing power and thus work more efficiently on the reward. For a better calculation of the possible profile, free mining calculators or the Litecoin Calculator, which are available online from experience, provide support.
Conclusion: trading success
There are many ways for traders to invest in Litecoin. Probably the easiest way is to use crypto exchanges for trading activities. The registration for the exchanges is done comfortably online and also the deposit of the trading capital or the link to the wallet is done easily via the Internet. Traders have the opportunity to invest in Litecoin at attractive conditions and to take advantage of the best offers at the crypto exchanges. Since the prices at the trading exchanges differ due to the different user behavior, it is recommended to compare the live prices directly beforehand. If the users want to use alternatives to the direct purchase of Litecoin, there are several possibilities. With the help of Litecoin Mining for example, users can secure free coins for the provision of their computing power and transaction processing. The coins are also free of charge if the users register with Litecoin Faucets and solve easy tasks. The coins earned can then be successfully exchanged at a crypto exchange or sold for Fiat money